BitVault, a DeFi protocol, has announced the closure of a $2 million pre-seed funding round, aimed at redefining Bitcoin's role in stablecoin infrastructure.
Funding Round Closure
BitVault has announced that it has successfully completed a $2 million funding round. Investors including GSR, Gemini, Auros, and Keyrock supported the project, which aims to create the 'next era of BTC-backed money.' The funds will go towards launching bvUSD, a stablecoin backed by Bitcoin derivatives.
Bitcoin and Stablecoins
According to information, bvUSD will be supported by Bitcoin derivatives, distinguishing it from fiat-backed stablecoins such as USDC. To mitigate risks associated with over-leveraged borrowing, minting bvUSD will only be available to institutional borrowers, while anyone can mint it using stablecoins. BitVault is also set to release sbvUSD, which will yield returns.
Future of BitVault
BitVault plans to launch its platform on Katana in June 2025, with further integrations across DeFi ecosystems and centralized liquidity venues in the works. The team is also looking to expand its stablecoin offerings to support additional BTC-backed assets.
The launch of BitVault and its stablecoins bvUSD and sbvUSD may represent a significant step towards integrating Bitcoin into the decentralized finance landscape, offering new opportunities for users and investors.
